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NHB · Commercial horticulture in open field (project mode)

NHB commercial horticulture projects: open field and large-scale hi-tech

An open-field commercial horticulture project above 2 hectares is costed at ₹100.00 lakh per project with credit-linked back-ended subsidy at 35% in general areas. A large-scale hi-tech project above 20 hectares in six named crops is costed at ₹200.00 lakh per project at the same 35%.

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Source verified by our team
Author Editorial team Reviewer Admin Verified 07 Sep 2026 Applies to NHB · Commercial horticulture in open field (project mode) Rule period 01 Apr 2025 – current
A reviewer matched the statements on this page to the official documents listed under Sources. It describes our verification work, not an official endorsement. Scheme decisions and approvals rest with the relevant authorities.

Changed on 21 August 2026. The National Horticulture Board revised its rate of assistance to 35% in general areas and 45% in the North Eastern and Himalayan States, Scheduled Areas and specified Union Territories. Cold storage subsidy is now capped at ₹2.00 crore per project, the cost of land no longer counts as eligible project cost, and only one member of a family may ever claim. Fresh applications have also been paused since 4 September 2026. What changed, in full.

Read this first: the NHB figures on this page come from Annexure VI of the MIDH Operational Guidelines, April 2025, which is headed “National Horticulture Board: proposed changes in components and cost norms”. They are recorded here as written. Confirm the operative position with the National Horticulture Board before spending money.

This is the component most people mean when they say “NHB subsidy”. It supports a whole horticulture project rather than a single item.

Two project sizes

Component Area Cost Assistance in general areas
Commercial horticulture development in open field conditions Over 2 hectares ₹100.00 lakh per project 35%, credit-linked back-ended
Large-scale hi-tech open field cultivation of identified high-value crops Over 20 hectares ₹200.00 lakh per project 35%, credit-linked back-ended

The hi-tech category is limited to six named crops: apple, walnut, almond, cashew nut, kiwi and date palm.

What the project may include

An integrated project may cover planting material, plantation, irrigation, fertigation, mechanisation, precision farming and good agricultural practices. The individual items are costed against MIDH crop-wise and component-wise norms on a pro-rata basis, which is why the NHM cost norms still matter even inside an NHB project.

Add-on components

Where MIDH cost norms do not cover something, Annexure VI provides its own norms:

  • Land — removed on 21 August 2026. The cost of land is no longer part of eligible project cost. Until that circular it was admissible if newly purchased and not before one year from the date of loan sanction, at actual cost or up to 10% of the eligible project cost excluding land, whichever was less, capped at ₹60,000 per acre. That is the figure much older material still quotes, so it is left here with its date rather than deleted.
  • Land development. Levelling, digging of pits, fencing and gates. Actual or up to 15% of eligible project cost excluding land, whichever is less, capped at ₹60,000 per acre.
  • Cultivation expenses. Planting material and inputs, as per MIDH and NHM norms on a pro-rata basis.
  • Drip system. Actual cost or ₹24,000 per acre.

Credit-linked means a bank comes first

Assistance is back-ended and tied to project financing. Without a sanctioned loan there is no route for the subsidy, and the money is settled after the project is completed and verified, not at the start.

Sources

Mission for Integrated Development of Horticulture (MIDH) — Operational Guidelines, April 2025
Horticulture Division, Department of Agriculture & Farmers Welfare, Ministry of Agriculture & Farmers Welfare, Government of India · Guideline · 01 Apr 2025 · Current
Official original
Statements checked on this page (8)
  • Superseded For commercial horticulture development in open field conditions in project mode, the cost is ₹100.00 lakh per project for projects covering an area over 2 hectares, applying MIDH crop-wise and component-wise cost norms on a pro-rata basis. Assistance is credit-linked back-ended subsidy at 40% of project cost in general areas. — Printed p. 65 (PDF page 75), Annexure VI
  • Superseded For large-scale hi-tech open field cultivation of identified high-value horticulture crops in project mode, namely apple, walnut, almond, cashew nut, kiwi and date palm, the cost is ₹200.00 lakh per project for projects covering an area over 20 hectares. Assistance is credit-linked back-ended subsidy at 40% of project cost in general areas. — Printed p. 65 (PDF page 75), Annexure VI
  • Source verified by our team An integrated NHB open-field project may include components such as planting material, plantation, irrigation, fertigation, mechanisation, precision farming and good agricultural practices. — Printed p. 65 (PDF page 75), Annexure VI
  • Source verified by our team The norms for technology add-on components and other essential components of integrated commercial horticulture projects apply only where MIDH cost norms are not available. — Printed p. 73 (PDF page 83), Annexure VI
  • Superseded The cost of land is admissible only if purchased newly and not before one year from the date of sanction of the loan. The admissible cost is the actual cost or up to 10% of the eligible project cost excluding land and land development, whichever is less, subject to a maximum of ₹60,000 per acre. — Printed p. 73 (PDF page 83), Annexure VI
  • Source verified by our team Land development, including land levelling, digging of pits, fencing and gates, is admissible at the actual cost or up to 15% of the eligible project cost excluding land and land development, whichever is less, subject to a maximum of ₹60,000 per acre. — Printed p. 73 (PDF page 83), Annexure VI
  • Source verified by our team Cultivation expenses in an NHB project, covering planting material and inputs such as labour, fertiliser, manures and pesticides, are admissible as per MIDH and NHM cost norms on a pro-rata basis. — Printed p. 73 (PDF page 83), Annexure VI
  • Source verified by our team For a drip system with internal components including mainline and valves, the admissible cost is the actual cost or ₹24,000 per acre, subject to the conditions stated in the annexure. — Printed p. 73 (PDF page 83), Annexure VI
Version history (5)
DateChangeReasonStatus
14 Oct 2026 Updated — Source verified by our team
08 Sep 2026 Marked the land cost as removed by the 21 August 2026 circular. The banner at the top of this page already said so while the body still listed it as admissible. — Source verified by our team
07 Sep 2026 Bulk approved by the owner (7 Sep 2026), not a line-by-line review — Source verified by our team
07 Sep 2026 Rates corrected after the NHB circular of 21 August 2026 — Awaiting verification
07 Sep 2026 Created — Awaiting verification
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Frequently Asked Questions

Since the circular of 21 August 2026 it is 35% in general areas and 45% in the North Eastern and Himalayan States, Scheduled Areas and specified Union Territories, across every listed component.

Over 2 hectares, costed at ₹100.00 lakh per project with credit-linked back-ended subsidy at 35% in general areas. A large-scale hi-tech project over 20 hectares is costed at ₹200.00 lakh per project at the same rate.

Six named crops: apple, walnut, almond, cashew nut, kiwi and date palm.

Not since 21 August 2026, when the cost of land stopped being part of eligible project cost. Land development — levelling, digging of pits, fencing and gates — remains admissible on our reading of that circular, at actual cost or up to 15% of eligible project cost, capped at ₹60,000 per acre.